Appreciation is like icing on the cake. It’s not uncommon to hear buy-and-hold real estate investors who are focused on cashflow to make that claim.
It makes sense if you have multiple properties each generating around $300 in monthly cashflow. But who doesn’t want MORE icing on their cake?
When you invest strategically in up and coming neighborhoods Philadelphia, you increase your chances of significant appreciation. Ask investors in Gray Ferry where the median house value went up 36% over the previous year (as of Dec 2018)! Here’s five ways of identifying up and coming neighborhoods Philadelphia.
1. House sales data
You can hear all kinds of things about various Philadelphia neighborhoods. But the MLS can give you the actual sales data. If you know a real estate agent, they can access all kinds of data about a neighborhood: total sales, average/median sales price, average price per square foot and average days on market. Charting this data and comparing neighborhoods will make clear which ones are up and coming neighborhoods Philadelphia. No access to the MLS? You can find some good comparative data on Zillow, Trulia and Realtor.com (but of course always take all data with a grain of salt! Many are quick to point out Zillow’s flaws but you can find good info on Zillow, Trulia, Realtor.com and other sites as long as you always recognize that data is never perfect.)
2. Neighborhood statistics
Zillow and Trulia also provide a lot of other neighborhood statistics, like information on schools, crime and demographics. Look for trends moving in the right direction.
3. Houses being renovated or built
The best up and coming neighborhoods are going through a lot of renovation, but they’re also preserving Philadelphia’s heritage. If you had driven through Brewerytown five years ago you would’ve seen a lot of vacant, boarded up houses and many more in a dilapidated state. Go there now and you’ll find streets where 80 or 90% of the houses have been renovated. When you buy a recently renovated house, you’re counting on appreciation, but when you buy it in a neighborhood where a lot of houses have been and are being renovated, the rate of appreciation will likely be greater.
4. “For Rent” and “For Sale” Signs
In up and coming neighborhoods Philadelphia, you won’t see a lot of “For Rent” signs because landlords are able to fill vacancies quickly. You may seen some “For Sale” signs, but there shouldn’t be too many of them either. A quick check online should reveal that many of those signs are connected to houses that have been listed too high.
5. New businesses, new infrastructure development and new transit
Are new businesses opening in the neighborhood? Has the City of Philadelphia announced any new infrastructure projects or new transit routes? Regularly checking the municipal and real estate news at Philly.com can keep you up to speed. Businesses and the city tend to invest in up and coming neighborhoods Philadelphia.
Summary
If you’re investing in real estate for the long term, it’s true that appreciation is just icing on the cake. You want to find solid deals that generate good cashflow. But why not try to identify up and coming neighborhoods Philadelphia so you can get a little more icing on the cake?